A company designs submersible robots with a new design for the robots that increases the rate of production. A new facility for manufacturing the submersible robots is constructed at a cost of 100,000,000. A contract is negotiated with a materials supplier (Supplier A) to provide all of the raw material and construction labor necessary for 250 per robot. The robots will be sold for 500 each.
(a) How many robots must be manufactured and sold to break even?
(b) How many robots must be manufactured and sold to make a profit of 100,000,000?
(c) An alternative materials supplier (Supplier B) comes along with a quote for the labor and material cost at 400 per robot, but only requires 50,000,000 to build a submersible robot construction facility. How many robots must be manufactured and sold to break even for this alternative supplier?
(d) Which supplier will generate a profit of 20,000,000 with fewer robots produced?
